DuPont Decomposition
Why does UNIVCABLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 5.4% × 0.70 × 2.29
Latest: FY2026
Profitability
Net Margin
5.4%
4.2% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.65x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
2.13x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by net margin improving (4.2% → 5.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.2% | 0.65 | 2.13 | 5.8% |
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 0.78 | 1.88 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.60 | 1.87 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.70 | 1.93 | 5.0% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 0.70 | 2.29 | 8.6% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.